Ukrainian strikes on Russian oil infrastructure reduced Black Sea exports by 42% in November, leading to a significant decline in Russia’s oil sales revenues.
According to the International Energy Agency, in November, Russia’s revenues from oil and petroleum product exports decreased by $3.59 billion compared to the same period last year, amounting to $10.97 billion. This is the lowest level since the beginning of the Russian invasion of Ukraine in 2022. The average daily export of oil and fuel fell by 420,000 barrels, causing buyers to demand additional discounts, resulting in a drop in the price of Urals oil by $8.2 to $43.52 per barrel.
The drop in supply volumes and prices of Russian oil is caused not only by sanctions but also by direct hits on infrastructure. The situation affected the average daily oil production, which fell to 9.03 million barrels. These volumes significantly lag behind the OPEC+ November quota, causing increased uncertainty among market participants.
Other countries importing Russian oil assess the risks associated with compliance with the sanction regime and demand further price reductions. As a result, the average discount on Urals relative to Brent reached $25.8 per barrel, approaching historical records.
